5 Beverage Stocks With Refreshing Returns

by Louis Navellier | February 1, 2012 2:45 pm

5 Beverage Stocks With Refreshing Returns

These consumer staples have been around for a very long time and aren’t going away any time soon. I’ll also wager there isn’t one person in your neighborhood who hasn’t had a sip of at least one of these beverages in the past week. As sure as your local grocery store gets stocked with their products, their stocks will keep posting positive returns.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. This week I’ve got five beverage stocks for you to watch.

Here they are, in alphabetical order. Each one of these stocks gets an “A” or “B” according to my research.

Anheuser-Busch (NYSE:BUD[2]) is a brewing company best known for the brands Budweiser, Stella Artois and Beck’s. In the past year, BUD stock has climbed 12% compared to smaller gains by the broader markets. BUD stock gets a “B” for earnings momentum, a “B” for its ability to exceed the consensus earnings estimates on Wall Street, a “B” for the magnitude in which earnings projections have increased over the past month, a “B” for cash flow and a “B” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of BUD stock[3].

Boston Beer (NYSE:SAM[4]) is a craft brewing company known best for its Samuel Adams line of beers. SAM stock has gained 18% since last year. SAM stock gets a “B” for operating margin growth, a “B” for earnings momentum, an “A” for the magnitude in which earnings projections have increased over the past month, a “B” for cash flow and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of SAM stock[5].

Coca-Cola (NYSE:KO[6]) is one of the largest beverage companies in the world and is best known for the soft drink that shares its name. KO stock has gained 8% in the past year. KO stock gets an “A” for sales growth, a “B” for operating margin growth, a “B” for cash flow and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of KO stock[7].

Diageo (NYSE:DEO[8]) is a beverage company with the following brands: Smirnoff, Johnnie Walker, Baileys Original Irish Cream, Captain Morgan, Tanqueray and Guinness. In the past year, DEO has climbed 17%. DEO stock gets a “B” for sales growth, a “B” for operating margin growth, a “B” for earnings growth, a “B” for cash flow and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of DEO stock[9].

PepsiCo (NYSE:PEP[10]) is a beverage and food company and is the biggest competitor for Coca-Cola. PEP stock has posted a modest gain of 2% in the past year. PEP stock gets a “B” for earnings momentum and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of PEP stock[11].

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[12] tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.